FX.co ★ Bay Street Likely To Open With Slightly Positive Bias On Higher Commodity Prices

Crude oil and gold are experiencing heightened prices, setting a promising tone for the Canadian market at the beginning of the trading week. However, growing tensions in the Middle East could dampen investor sentiment and potentially limit market gains.

As we head into the week, attention will be on upcoming significant data releases, including Canada's unemployment numbers and the U.S. consumer price inflation figures, which are likely to keep investors on their toes.

Recent developments in the Middle East indicate that Israeli defense forces have intensified their air strikes on Gaza and Beirut, marking the anniversary of the initial cross-border attack by Hamas on Israel, which sparked the ongoing conflict in the region. According to the Hamas-run health ministry in Gaza, numerous fatalities resulted from airstrikes on a mosque and a former school, both repurposed as emergency shelters. The Israeli military claims these sites housed Hamas militants.

On a corporate front, Chevron Canada, a subsidiary of Chevron (CVX), announced a definitive agreement with a related entity to dispose of its 20% non-operated stake in the Athabasca Oil Sands Project and a 70% operated interest in the Duvernay shale, alongside related interests in Alberta, Canada. The buyer, Canadian Natural Resources Limited, will acquire these assets in a $6.5 billion cash transaction.

On Friday, the Canadian market achieved record intraday and closing highs, driven by strong performances in technology and energy stocks. Positive U.S. jobs data, alongside encouraging results from Canada's Ivey Purchasing Managers Index, reinforced market confidence. The S&P/TSX Composite Index reached a new peak of 24,179.28 and concluded at 24,162.83, marking an advance of 194.33 points or 0.81%. For the week, the index rose by approximately 0.45%.

In other markets, Asian stocks surged on Monday and the U.S. dollar achieved a seven-week high against the yen, buoyed by strong U.S. jobs data that underscores economic resilience, yet it has led traders to scale back expectations of significant interest-rate cuts by the Federal Reserve. Following the positive jobs report, traders now largely anticipate a quarter-point rate cut at the Federal Reserve's policy meeting scheduled for November 7, although there's still a slight possibility that the rate could remain unchanged.

European stocks are experiencing a mild upturn, with the U.K. and Germany trading positively, although France is displaying weaker performance.

In the commodities sector, West Texas Intermediate Crude oil futures are up by $1.42 or about 1.91%, trading at $75.80 per barrel. Meanwhile, gold futures have increased by $8.80 or 0.33%, valued at $2,676.70 per ounce.